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4411 San Felipe: 8-Story Office Building


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There were some trucks on the site yesterday and now there are a few small posts/flags up so I'm hoping that means construction will actually begin soon. Certainly nothing substantial yet though.

Edited by asubrt
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Costar article:

 

On the heels of wrapping up a high-profile residential skyscraper in Houston's Uptown-Galleria area, DC Partners has more plans to change the skyline in the area.

 

DC Partners plans to break ground next quarter on a 92,340-square-foot office and retail building at 4411 San Felipe St., according to the developer and NAI Partners, which is leasing the building. The seven-story building is expected to be home to DC Partners' future headquarters. The mixed-use building is across the street from Arabella, its recently completed 99-unit condo skyscraper where units start at close to $1 million.

 

The project comes as developers respond to ongoing demand for new office space in mixed-use projects and certain areas of the city, despite a stubbornly high office vacancy rate across the broader Houston metropolitan area.

 

Although Houston has bounced back from the oil bust of 2015, its office vacancy rates remain the highest in the country at 16.4%, according to CoStar data. Yet office tenants continue to seek newer buildings in a so-called flight-to-quality, spurring developers to pour money into building new office towers even as large swaths of space sit vacant in some areas of Houston.

 

In total, the 4411 San Felipe project has roughly 79,035 square feet of office space and about 17,000 square feet of retail. For the office space, about 50,000 square feet is still available, said David Bateman, senior vice president office project leasing with NAI Partners. DC Partners and NAI Partners declined to disclose any signed tenants.

 

DC Partners plans to move its headquarters to the site from its existing headquarters at 2506 W. Main St. in the Greenway Plaza area, where it leases about 3,000 square feet of space, according to CoStar data.

 

The San Felipe office project is designed to have three levels of parking with valet parking services, and an outdoor terrace with landscaping and views of Houston skylines. The building is just north of the River Oaks District, a 650,000-square-foot open-air retail center with high-end tenants such as Cartier, Harry Winston, Baccarat and Dior.

 

Project cost estimates were not disclosed for 4411 San Felipe.

 

Although the Uptown-Galleria area has a vacancy rate of 16.7%, brokers and developers are saying they’re seeing demand for newer office space in the area known as Houston's second commercial business district.

 

"The trend for years now has been the flight-to-quality in Houston and that's true in Uptown/River Oaks District in particular. [Quality] in my definition doesn’t necessarily mean nicer or newer, it means better access, more efficient use of the site, better, efficient floor plates, new modern, bright finishes," Bateman said.

 

He pointed to his own company as an example of how finding newer space with the right square footage in the Uptown area can be a challenge. At the time, there were "very few options" for roughly 20,000 square feet of newer space with "modern, updated amenities" in the Galleria, Bateman said.

 

"We have first-hand experience," he said. NAI Partners ended up in about 20,300 square feet at 1360 Post Oak Blvd.

 

After a big burst in construction activity that pushed up the Galleria’s total office inventory by about 11% from 2010 to 2017, new office construction in the area has slowed considerably this year, according to CoStar data.

 

There is just about 133,000 square feet of new office construction in the area, including a 68,000-square-foot building as part of Zadok Jewelers’ mixed-use project, according to CoStar data. That compares to 1.3 million square feet of new office construction taking place in downtown, Houston’s other busiest commercial district.

 

Nearby, a 210,000-square-foot building, called 200 Park Place, at 4200 Westheimer is underway by Stonelake Capital Partners.

 

The 411 San Felipe building is expected to be completed in the first quarter of 2021, 200 Park Place should be completed around March 2020 and Zadok Jewelers building is expected to be done at the end of 2020.

 

DC Partners first announced the mid-rise office building in 2018, and it even received some initial building permits, according to city of Houston documents. The project initially was supposed to break ground in September 2018, according to state documents.

 

A DC Partners spokeswoman said the gap in time from proposing the project until now arose as the group was exploring multiple options with tenants.

 

Also since then, DC Partners has been busy with several projects, including completing construction at Arabella and pre-development for The Allen, a $500 million mixed-use, six-acre project by Buffalo Bayou, which recently broke ground.

 

Initial plans for the Allen include a condominium-hotel high-rise, but the developer expects to add one or possibly two additional office structures in future phases of the project along Allen Parkway. It is one of the many new mixed-use developments in the works for the Buffalo Bayou area spurred by the $58 million revitalization of the river. Meanwhile, Hanover and Lionstone Investments are also breaking ground on the first phase of a 13.5-acre mixed-project by Buffalo Bayou, which also could include about 300,000 square feet of office space.

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  • Highrise Tower changed the title to 4411 San Felipe: 8-Story Office Building
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https://www.businesswire.com/news/home/20201218005406/en/3650-REIT-Originates-31M-Loan-to-Construct-Mixed-Use-Houston-Project

 

3650 REIT, a nationwide commercial real estate lender originating and servicing portfolio loans for relationship borrowers, is pleased to announce it has originated a $31 million loan for the construction of 4411 San Felipe, a 95,000-square-foot mixed-use project consisting of retail and office space located at 4411 San Felipe Street in Houston, Texas. The loan carries a term of 30 months and is provided to sponsor DC Partners, a Houston-based development and investment firm with a portfolio comprising 1.5 million square feet and $500 million currently in development.

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